I think the only potential starting point in a saturated market like kiteboarding is to have a truly differentiated product with relevant product benefits. That is the value proposition like somebody mentioned above.
As also mentioned above Boardriding Maui for me is a good example although they are still in the start up/infancy phase.

Anabatic_co_nz wrote:
Our model is not heavily disruptive like BEST were and SWITCH are.

How is being competitive on price by cutting out people in the supply chain disruptive - it is economic competition? If you gave kitesurfers the choice of buying direct from the manufacturer at 60% of retail or buying through a shop and distributor chain which do you think they would chose?

Anabatic_co_nz wrote:
Our model is not heavily disruptive like BEST were and SWITCH are.

How is being competitive on price by cutting out people in the supply chain disruptive - it is economic competition? If you gave kitesurfers the choice of buying direct from the manufacturer at 60% of retail or buying through a shop and distributor chain which do you think they would chose?

Disruptive is not a negative term in this context- it is used to describe new technologies/distribution methods that change an industry.

Thanks William, I'm glad you got it.
I'm not being negative towards what BEST and SWITCH achieved with their disruptive marketing campaigns.
I have have huge respect for Alex Shogren for having the stones to do what he did, Shannon Best too. Those guys rocked it hard out.
Note.. Shannon has a new kite company of his own now too.

I had a good chat with SWITCH founder Ralph a couple of months back, have to say I am well impressed with his success. His is a totally different approach to the business than ours.

As for HELL Kites.. I really want to see them running out through existing shops and schools instead of going direct. Yes, we cut out the distributor, but that is all.
Still a very traditional model other than that.
I see a huge amount of value in retail/support and tuition.

Anabatic_co_nz wrote:
Our model is not heavily disruptive like BEST were and SWITCH are.

How is being competitive on price by cutting out people in the supply chain disruptive - it is economic competition? If you gave kitesurfers the choice of buying direct from the manufacturer at 60% of retail or buying through a shop and distributor chain which do you think they would chose?

Disruptive is not a negative term in this context- it is used to describe new technologies/distribution methods that change an industry.

Yeah, I prefer to call it model innovation. Others call it 'blue ocean' in the business world. The idea is that you should not attempt to compete directly with the larger companies. That is shark infested waters, or red water. Most people think that to find the blue ocean you need better product innovation. This simply is not true. Product innovation is the most difficult method for staying in blue water. As soon as the new product goes to market, the larger companies jump in to get a piece of the action. Continued product innovation is very difficult and very expensive.

Take the Cloud kite as an example. Great product innovation and fundamental change in design direction. By the time it hit the market, two other big brands were getting ready to launch a directly competing product. There isn't another readily available dramatic fundamental change to move to from there for them. A small company can typically differentiate through product innovation once, or maybe twice before they are back competing in red water again.

Conversely, business model innovation is simpler and less expensive. The idea is that you are not hemorrhaging money in a huge R&D project to try to make a better mouse trap. You are figuring out a different way to get the trap to the consumer. Small companies typically do this better than large companies.

Carefully consider the market. What are the various consumer segments? What are the different value propositions for each segment? Try to differentiate through business model innovation rather than product.

In my view the kite market has stalled / tanked (just like windsurfing 15 years ago). Meanwhile most brands have moved into the SUP in the hope to conquer a part of this new market.
There is more money to be made in SUP than in kites: larger market as there are more places on earth where SUP is feasible and SUP has not the perception of being dangerous like kite surfing.